HARTFORD, Conn., Jan. 11, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased the publicly traded securities of Impac Mortgage Holdings, Inc. ("Impac" or the "Company") (NYSE:IMH) between May 13, 2005 and August 9, 2005, inclusive (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning Impac's business condition. Specifically, defendants failed to disclose and misrepresented the following facts: (i) that Impac lacked an adequate internal controls system and was not able to determine its true financial condition; (ii) that the Company's quarterly guidance concealed the Company's true financial standing; and (iii) as a result of the foregoing, the Company's statements with respect to its future prospects lacked any reasonable basis. Rather than disclose this adverse information to investors, Impac insiders, including defendants, took the opportunity to sell more than 300,000 shares of their personally held Company stock, reaping more than $5.5 million in proceeds.
On August 9, 2005, Impac announced a net loss of $55 million, or $(0.78) per share, compared to a profit of $143.2 million, or $2.17 per share, and forecasted a reduced dividend of $0.50 to $0.60 per share versus its previous dividend of $0.75 per share. On this news, Impac shares fell 14.6% from $16.37 per share to $13.98 per share.
If you are a member of the class, you may, no later than March 13, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca